Garnet International Limited has submitted a regulatory disclosure to BSE Limited under Regulation 30 of SEBI (LODR) Regulations, 2015, regarding the expiry of the conversion window for convertible warrants and proposed forfeiture.
The Board of Directors had allotted 27,00,000 convertible warrants on February 10, 2025, through a preferential issue at an issue price of ₹131 per warrant (face value ₹10 + premium ₹121). The warrants were allotted to both Promoter Group and Non-Promoter subscribers upon receipt of 25% upfront application money of ₹32.75 per warrant, aggregating to ₹8,84,25,000.
The 18-month tenure for conversion of these warrants into equity shares, as mandated by Regulation 169(3) of SEBI (ICDR) Regulations, 2018, has now expired. All subscribers across both Promoter and Non-Promoter categories failed to pay the remaining 75% balance consideration of ₹98.25 per warrant within the stipulated timeline.
Consequently, all 27,00,000 warrants stand lapsed and unexercised, resulting in no change to the company's paid-up share capital. The formal cancellation and forfeiture of these 27,00,000 unexercised warrants, along with the transfer of the ₹8,84,25,000 upfront money to the Capital Reserve Account, will be placed for Board approval on Friday, August 14, 2026.
Under Regulation 159(2) of SEBI (ICDR) Regulations, 2018, all defaulting allottees shall be ineligible for any preferential issue of the company for one year from the date of forfeiture.
Warrant Holder Details
The following warrant holders failed to exercise their conversion rights:
Non-Promoter Allottees:
- Choice Strategic Advisors LLP: 4,50,000 warrants
- YBRA Ventures LLP: 1,60,000 warrants
- Sunita Agarwal: 1,00,000 warrants
- Shree Ram India Gums Ltd: 80,000 warrants
- G K Tobacco Industries Pvt. Ltd: 80,000 warrants
- Gopichand Gupta: 80,000 warrants
- Pushpa Devi Gupta: 80,000 warrants
- Adishakti Steels: 80,000 warrants
- Sunil Kumar Kedia: 80,000 warrants
- Sheetal Agarwal: 80,000 warrants
- Ankit Modi: 80,000 warrants
- Aditi Agarwal: 80,000 warrants
- Arth Bansal: 75,000 warrants
- Kanishq Bansal: 75,000 warrants
- Pranav S. Kanwar: 50,000 warrants
- Krish Kanwar: 50,000 warrants
- Rajbala: 50,000 warrants
- Ronak Pujari: 50,000 warrants
- Suresh Zunzunwala: 40,000 warrants
- Sameer Agarwal: 40,000 warrants
- Puran Mal Agarwal: 40,000 warrants
- Shubham Agarwal: 40,000 warrants
- Vidhi Sheetal Murarka: 40,000 warrants
- Barkha Tibrewal: 40,000 warrants
- Accufolio Risers LLP: 40,000 warrants
- SKAEL Enterprise Pvt. Ltd: 40,000 warrants
- Gita Devi Bhutra: 30,000 warrants
- Saloni Ramratan Chirania: 20,000 warrants
- Nandkishore Sharma: 20,000 warrants
Promoter Group Allottees:
- GVS Chemical Pvt. Ltd.: 3,00,000 warrants
- Mangal Savitri Bizcon Pvt. Ltd.: 2,30,000 warrants
Total warrants lapsed: 27,00,000
Financial Impact
The upfront consideration of ₹8,84,25,000 will be forfeited and transferred to the Capital Reserve Account upon board approval. There is no dilution or change in the capital structure of the company.